Vedanta to exclude base metals business from sweeping demerger
The group said it will consider the base metals business demerger at a later stage.
Toronto-based junior miner Orvana Minerals (TSX: ORV) posted a relatively strong fiscal second quarter ended March 31, 2019, with good performance from its two operating mines: the Don Mario gold mine in Bolivia and the El Valle gold-copper mine in Spain.
Orvana recorded net income of $3.3 million on $36 million in revenue during the past quarter, compared with a net loss of $3.5 million on $37 million in revenue during the year-ago quarter.
Fiscal year to date, Orvana has a net profit of $2.3 million on $72.3 million in revenue, versus a net loss of $6.9 million on $71 million in the year-ago period.
Orvana says it is on track to meet its production guidance for fiscal 2019 of 100,000 to 110,000 oz. gold and at least 3.2 million lb. copper
At Don Mario during the second quarter, Orvana produced 9,564 oz. gold, or 11% less than in the first fiscal quarter but almost the same as the year-go quarter.
At El Valle, Oravana produced 17,738 oz. gold in the second quarter, or 7% more than in the first quarters and 17% more than in the year-ago quarter. By-product copper output totalled 1.44 million lb. in the second quarter versus 1.38 million lb. in the first quarter.
On a combined gold-equivalent basis, Orvana produced 31,112 gold-equivalent oz. during the second quarter versus 30,988 oz. in the forst quarter and 31,905 oz. in the year-ago quarter.
Consolidated second-quarter all-in-sustaning costs were US$1,107 per oz. gold, or 5% lower compared to the first quarter and 15% lower compared to the second fiscal quarter of 2018.
The company ended the period with a cash balance of $9.3 million, and in recent months arranged an €8-million credit facility with a three Spanish banks, allowing the miner to repay money owed to Samsung C&T in a facility arranged in August 2016.
Orvana CEO Juan Gavidia stated in a release: “Having already established a track record of consistent operational performance, Orvana is now clearly delivering on unitary costs, and profitability metrics … We are firmly committed to delivering on our production guidance and ensuring extended mine lives for our assets in Spain and Bolivia.”
Orvana says it is on track to meet its production guidance for fiscal 2019 of 100,000 to 110,000 oz. gold and at least 3.2 million lb. copper.
The company recently took a significant step into Argentina with an agreement to purchase that Taguas gold property in San Juan province, with Orvana getting 100% of Taguas by granting the vendor an indivisible net smelter return royalty of 2.5% on any metals mined from the property. The vendor is indirectly owned by Orvana’s 51.9% shareholder.
Orvana describes Taguas as consisting of 15 mining concessions covering 32.7 sq. km on the eastern flank of the Andes, between 3,500 and 4,300 metres above sea level, about 25 km north of Barrick Gold’s Veladero mining operations.
The company says Taguas is a “potential third operation” that is at an advanced exploration stage and where an engineering program is being developed. It plans to complete preliminary economic assessment report on Taguas during the third quarter.
(This article first appeared in The Northern Miner)
